According to a report by Newsable Asianet News, in a recent move, the state government has issued an order to raise the price of milk by ₹3 starting from August 1.

The report noted that the hotels association has decided to increase their prices by 10 per cent, aligning with the proportionate rise in the cost of milk products, the report noted.

Mint could not independently confirm the development.

Newsable Asianet News further report that as a result of the recent price increases, service-based businesses such as electricians, plumbers, and other daily-wage workers are facing challenges to sustain themselves in the competitive market.

According to reports, these daily-wage workers, who previously earned around ₹600-700 per day, are now seeking a wage hike to ₹1100 per day to cope with the rising living costs and maintain their livelihoods.

The commodities that are scheduled to experience price hikes in August include:

Milk: The Karnataka Milk Federation had put forth a proposal to raise the price of milk by ₹5 per litre, but the government approved a lesser increase of ₹3 per litre. This revised price will come into effect from August 1.

Vegetables: The prices of vegetables, particularly tomatoes, have soared significantly, with tomatoes reaching a staggering ₹200 per kg. Additionally, beans, chillies, bottle gourds, and other vegetables have also witnessed substantial price increases. Meanwhile, the government has not intervened to regulate the vegetable prices in the market.

Hotel snacks: Taking cues from the increase in milk prices, the hotel association has opted to raise the prices of food and snacks by 10%, Newsable Asianet News reported.

Excise duty: The introduction of the five guarantee schemes was directly linked to a corresponding 20% increase in the excise duty in the state. This increase applies to various alcoholic beverages, including whisky, brandy, and other Indian-made liquors.

Registration and stamps: The registration process for land, land purchases, and house construction is expected to become more challenging as the government has already raised the prices for these registrations.

Dept of Mines and Geology: As a result of the government setting a revenue collection target for this department, the prices of house-building materials like gravel, sand, and granite are expected to rise.

Motor vehicle tax: The government has raised the tax on commercial vehicles, encompassing taxis, school vans, and buses, among others. There is a 15% increase in tax for vehicles priced above ₹15 lakh and a 9% tax for vehicles with a price range of ₹10-15 lakh. The government anticipates earning ₹472 crores through this tax hike.

In order to maintain balance after implementing the Shakti scheme and acquiring additional buses, the KSRTC (Karnataka State Road Transport Corporation) has decided to increase bus fares by ₹2 to ₹5. These revised fares will come into effect from August 1, Newsable Asianet News added.

Updated: 01 Aug 2023, 10:07 AM IST